The National Bureau of Statistics has said that the country’s Gross Domestic Product grew to 7.68 per cent in the fourth quarter of 2011, higher than the 7.40 per cent in the previous quarter.

The NBS, in its latest report which was released on Tuesday in Abuja, said the non-oil sector, which had indicated vibrancy was driven by growth in activities recorded in the solid minerals, telecommunications, wholesale and retail trade, building and construction, hotel and restaurant, real estate and business services sectors.

These sectors, which according to the report make up 30.8 per cent of the nation’s GDP, each grew at an average rate of over 10 per cent during the year.

It said, “Most vibrant is the communication sector which grew at an average rate of 34.8 per cent in 2011. On the other hand, the oil sector output decreased as a result of the facilities shut down in the sector.”

For agricultural output, the report stated that its real GDP growth in the fourth quarter of 2011 was 5.74 per cent as against 6.08 per  cent in the corresponding period of 2010, while wholesale and retail sector contributed 19.87 per cent to total GDP in the fourth quarter of 2011, slightly higher than the 19.14 per cent recorded in 2010.

It also said the finance and insurance sector recorded a slow growth of 3.22 per cent in the fourth quarter of 2011 compared with the 3.43 per cent recorded in the same period of 2010.

The manufacturing sector also recorded a decrease in growth from 7.67 per cent in fourth quarter of 2010 to 7.50 per cent in the review period in 2011.

A country’s GDP is a measure of economic activity that shows the productive capacity of all the sectors of the economy.

It is thus the value of all goods and services produced within the borders of that country over the given period.

GDP grew by 6.64 per cent in the first quarter, 7.72 per cent in the second quarter and 7.40 per cent in the third quarter of 2011.

But Nigeria’s oil sector had witnessed unprecedented levels of disruption compared to recent times due to temporary shutdown of facilities such as at Bonga, a 200,000 barrel per day facility, which supplies close to 10 per cent of Nigeria’s total crude output.

Sabotage leaks had also resulted in Shell Development Company of Nigeria declaring a force majeure on its Forcados export programme for the fourth quarter of 2011 due to a sabotage leak on Trans Forcados Pipeline.

However, the sector had benefited immensely from the high international crude oil market price and the exchange rate regime of the naira against the United States dollar in spite of decline in daily average production in the quarter under review.

But the NBS, in its report said that while the oil sector contributed about 14.64 per cent to real GDP in the fourth quarter 2010, the contribution in fourth quarter of 2011 was however, 13.54 per cent.

It said, “On an aggregate basis the economy when measured by the real GDP, grew by 7.68 per cent in the fourth quarter of 2011, as against 8.60 per cent in the corresponding quarter of 2010.

“The 0.92 percentage point decrease in real GDP growth observed in the fourth quarter of 2011 was as a result of production shutdown in the oil sector during the period. On a nominal basis, the GDP for the fourth quarter of 2011 was estimated at N10.04tn as against the N9.45tn during the corresponding quarter of 2010 thus indicating an increase.”

It said that the country’s vision to be among the 20 largest economies in the world by the year 2020, measured by GDP remained on track as only two countries out of the 46 countries that had so far released their GDP figure grew faster than Nigeria.

Source: Punch/Ifeanyi Onuba and Ademola Alawiye